In recent times, India has surpassed China in P2P bitcoin trading volume and this shows that bitcoin has begun to flourish in the country.
India’s supreme court judge has caused an increase of 87% in P2P bitcoin trading volume.
In March, the Supreme court of India removed the ban placed on Bitcoin by the central bank, and since the crypto industry in India is growing rapidly.
Many analysts have tried to explain the actors that cause this growth. Some analysts belives that the inflation rate of the Indian Rupees which is constantly losing value against the Dollar has led to an increase in crypto assets. While another reason could be because the country operates a huge remittance economy.
Over $80 billion was remitted to India in 2019. This alone accounts for 3% of the total GDP of the country.
India’s lack of financial inclusivity could be one of the reasons for the growth of Bitcoin volume trade. Many people in India don’t have a bank account and this holds a plus point for bitcoin as it brings access to the global digital economy system to the one without an account.
However, there is a chance that some of the remittances were made in crypto or bitcoin because of the cheap transaction fees and the speed with which such transactions deliver. This has led to the rise of Paxos that specializes in crypto remittance.
Innovations in the crypto industry could also be considered as a reason for the growth of the bitcoin trading volume. Flashloans, a decentralized finance projects build on the Ethereum smart contract has also given a push to the growth.